An Analysis of Private Sector Actors’ Implementation of Uganda’s Petroleum Industry Local Content Policies

Abstract

ABSTRACT The (un)successful implementation of local content policies (LCPs) is often attributed to the oil and gas industries’ corporate demands. Uganda discovered commercially viable oil and gas in 2006 and consequently adopted LCPs. However, limited research has looked at how private sector actors have responded to LCPs. This article analyzes how they have responded to the LCP requirements and to what effect. Sixty-seven key informant interviews with public, private, and civil society actors were conducted together with analysis of local content public and private sector reports and legal and policy documents. Findings indicate that local suppliers have adopted joint-venture mechanisms and enhanced their capacities through on-the-job training offered by international oil companies in response to both LCPs and industry corporate requirements. International companies have also changed their structures and policies to develop local suppliers’ capacities. I conclude by arguing for the establishment of all-inclusive local content development programs.